Analysts adjust Amazon stock price target after earnings

Following Amazon's recent earnings report, analysts have revised their stock price targets due to strong performance, particularly from Amazon Web Services (AWS), which reported a 17% revenue increase to $25 billion. AWS's growth and potential in cloud computing and generative AI are seen as key drivers for Amazon's future expansion.

Amazon's first-quarter earnings exceeded expectations with a profit of 98 cents per share and total revenue of $143.3 billion, surpassing analyst forecasts. Despite this, Amazon provided a cautious sales forecast and noted increased capital expenditures, particularly in AWS to enhance its infrastructure and generative AI capabilities.

Several investment firms, including BMO Capital and Goldman Sachs, raised their price targets for Amazon, citing robust AWS growth and promising developments in cloud migration and advertising revenue. Analysts remain optimistic about Amazon's performance in the coming quarters, driven by AWS and advertising business strengths.